Eagle Plains Acquires 100% Interest in Yukon Silver/Base-Metal Deposit

Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:CDNX) announces that staking activities have been completed on the Blende silver/base-metal deposit located in the Wernecke Mountains, approximately 65 NE of Keno in central Yukon Territory. A total of 16 quartz claims covering approximately 800 acres were located over the deposit and adjacent areas with high exploration potential.

The Blende is a carbonate-hosted deposit on the south edge of the Mackenzie Platform, hosted by Middle Proterozoic Gillespie Group dolomite. Based on exploration work to the end of 1991, drill-indicated reserves are reported as 19.4 million tonnes grading 55.9 g/t silver and 5.85 % lead-zinc, located in the two zones. On surface, the deposit is outlined by an open-ended 4.8km-long soil anomaly which contains values up to 10 000 ppm Zn. Most geophysical methods including IP, VLF and Max-Min EM work exceptionally well due to the inert nature of the host dolomite. Diamond-drilling carried out in 1991 by Billiton Metals Canada Ltd. delineated two separate zones (East Zone and West Zone), and established that the deposit is non-acid generating and could be mined by open pit methods, with a stripping ratio of 2.1:1. The deposit consists of a near-surface steeply dipping tabular body which is conveniently located on a ridge crest. Preliminary metallurgical studies indicated no significant concentrations of deleterious elements.

Although initially explored as an open-pit target, Eagle Plains management feels that there is good potential to develop the property as an underground operation. Numerous high-grade intersections have been reported by past operators, including hole 88-02 which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4% zinc over 19.8m from a depth of 70.7 to 90.5m. Hole 88-03 returned 8.5m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6 % zinc from 118.0 to 126.5m, and hole 90-15 intersected 9.5m grading 351.2 g/t (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to 69.6m. Step-out drilling in 1994 confirmed the continuation of ore-grade mineralization westward, with the addition of significant copper values. Hole 94-81 contained 14.9 m of mineralization which assayed 228.4 g/t (6.66 oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78% copper from 9.2m to 24.1m, while hole 94-84 intersected 8.5m which returned 136.1g/t (3.97 oz/t) silver, 6.74% lead, 3.65% zinc, and 2.43% copper from 45.5-54.0m.

Mineralization at the Blende was originally noted by the GSC in 1961 and was first staked in 1975 by Cyprus Anvil Mining Corp., which carried out mapping and geochemical sampling later in the year. Archer Cathro & Associates (1981) Ltd. restaked the property in April 1981 and conducted trenching and rock sampling from 1981 to 1984. NDU Resources Ltd. purchased the property in 1987, and in 1988 drilled 3 holes (718 m) and explored by mapping and hand trenching. In 1989 NDU carried out mapping, road construction, soil sampling, magnetic and VLF-EM surveys. Billiton optioned the property in 1989 and as project operator drilled 15 holes (3659.7 m) in 1990. Billiton’s 1991 work included completion of the soil geochemical and geophysical coverage, drill-testing of the deposit over a 3.3 km strike length, and preliminary metallurgical tests. The 1991 drilling consisted of 62 holes totaling 11,525m, including 15 holes in the West Zone, 34 holes in the East Zone and 13 holes in the central area between the two zones. Billiton elected in 1993 to covert its interest to a 10% net profits royalty. In 1994 NDU drilled 7 step-out holes (596m) which successfully extended the West Zone 150m further westward (the West Zone remains open in this direction). This activity is the last recorded exploration of the property. In March, 1998 NDU merged with United Keno Hill Mines Ltd. (UKHM) and the property came under the control of UKHM, which subsequently went into receivership. Eagle Plains consultants in Whitehorse commenced staking immediately after the original claims expired.

Through its employees and consultants, Eagle Plains Resources continues to adhere to its strategy of acquiring quality mining and exploration projects through research and staking activity. The company now has a portfolio of more than 20 gold, silver and base-metal properties and believes that the challenges facing the mining industry today offer unprecedented growth opportunities for aggressive, well-funded junior exploration companies like Eagle Plains.

On Behalf of the Board of Directors

Tim J. Termuende, P.Geo.
President and CEO